Working Paper: CEPR ID: DP7360
Authors: Helge Berglann; Espen R. Moen; Knut Roed; Jens Fredrik Skogstrøm
Abstract: We examine the origins and outcome of entrepreneurship on the basis of exceptionally comprehensive Norwegian matched worker-firm-owner data. In contrast to most existing studies, our notion of entrepreneurship not only comprises self-employment, but also employment in partly self-owned limited liability firms. Based on this extended entrepreneurship concept, we find that entrepreneurship tends to be profitable. It also raises in-come uncertainty, but the most successful quartile gains much more than the least successful quartile loses. Key determinants of the decision to become an entrepreneur are occupational qualifications, family resources, gender, and work environments. Individual unemployment encourages, while aggregate unemployment discourages entrepreneurship.
Keywords: entrepreneurship; self-employment; spinoffs
JEL Codes: L26; M13
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| individual unemployment (J65) | entrepreneurship (M13) |
| aggregate unemployment (J64) | entrepreneurship (M13) |
| family resources (D14) | entrepreneurship (M13) |
| gender (J16) | entrepreneurship (M13) |
| spouse's wealth (D14) | entrepreneurship (for married men) (L26) |
| own wealth (D14) | entrepreneurship (for married women) (L26) |
| entrepreneurship (M13) | income premium (G52) |
| successful quartile of entrepreneurs (L26) | income gain (E25) |